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Electricity tariff hike looms amid coal tender dispute: Ravi Karunanayake
Colombo, March 1 (Daily Mirror) - Former Finance Minister and Member of Parliament Ravi Karunanayake has charged that the government’s claim that coal was imported through a proper tender procedure for the first time in history is “a complete lie,” warning that the proposed electricity tariff hike will further burden the public.
Speaking at a media briefing held in Colombo, Karunanayake said that the tender procedure for coal imports was introduced during his tenure as Minister of Power and Energy.
“When I was the Power and Energy Minister, I brought the report calling for the tender system. Now they claim tenders were not called earlier. That is false,” he said.
Referring to the proposed 13 percent electricity tariff hike, he noted that the Public Utilities Commission had previously requested the Ceylon Electricity Board (CEB) to increase prices, but it had resisted at the time. “Now they are demanding a 13 percent increase. The cost related to the current coal issue will not be added this quarter, but after some time, the electricity bill will increase again as a result,” he warned.
Karunanayake said that nine coal shipments have already arrived and one ship is currently being unloaded, while a total of 37 coal ships are expected. He claimed that delays could result in significant financial losses.
“If one shipment is delayed, the loss will have to be recalculated. At present, there is already a loss of Rs. 8 billion,” he said, adding that if procurement procedures are not properly followed, agreements could even be suspended.
Commenting on the global situation, he pointed to instability during the foreign visits of former US President Donald Trump, warning that rising geopolitical tensions could lead to higher global oil prices, severely impacting countries like Sri Lanka.
He also addressed concerns about coal quality, explaining that the calorific value plays a crucial role in power generation. “Coal with 5,900 calories is of very good standard. If the quantity is low, no matter how much coal is used, the expected heat output will not be achieved,” he said.
Karunanayake further alleged that the government is implementing the economic programme introduced by former President Ranil Wickremesinghe without proper parliamentary approval.
He added that measures taken to meet conditions of the International Monetary Fund (IMF) include ensuring compliance with Board of Investment (BOI) regulations, requiring export institutions to operate through the BOI framework.
Karunanayake highlighted that the country’s bankrupt economy is facing a strong challenge and warned that policy inconsistencies and misinformation would only aggravate the financial strain on the public.
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